Organizational Antecedents of a Mining Firm's Efforts to Reinvent Its CSR: The Case of Golden Star Resources in Ghana1

This article reports a case study of how organizational antecedents, specifically leadership choices, decisions, culture, and organizational learning, impact and construct the corporate social responsibility (CSR) initiatives of a Canadian mid‐tier mining firm operating in Ghana. The primary objective of the article is to demonstrate, through an in‐depth study of a single case, that organizational‐ and firm‐level antecedents are a powerful tool for understanding how ethical, socially responsible, and community‐relevant behaviors of a mining firm in a developing area come to be constructed. The article thus contributes to the conceptual and applied literatures on CSR by suggesting that much as the voice of moral suasion, advocacy, and critical censure have been important motive forces behind CSR efforts, it seems that the sustainability and community relevance of CSR efforts are linked to identifiable internal response mechanisms that dispose or enable firms to behave in responsible ways.     

Toward a theory of local legitimacy by MNEs in developing nations: Newmont mining and health sustainable development in Peru

This paper describes a current initiative by Newmont Mining Corporation (Newmont) to develop sustainable community benefit in communities around its mining operations in Peru in response to heightened criticism of Newmont by non-government organizations and the media. Using anthropologically oriented methods, a community health assessment project in an area of projected mining is described in detail in this paper. This case adds to London and Hart's social embeddedness strategy for multi-national enterprises (MNEs) working in developing nations by introducing a locally-based community interaction model, which we describe as a local legitimacy strategy, in an effort to bring about sustainable development in the communities that surround a MNE's production activities. The components of our local legitimacy strategy include co-analysis of community needs by MNEs and community partners, and planning and investment in developments to enhance the social fabric and the physical infrastructure needs of communities. The developing world is getting better at publicizing and monitoring the work of MNEs. We argue that it will be increasingly necessary for MNEs, like Newmont, to add local sustainable benefit into their strategic mix to gain the social license and legitimacy that is needed to operate in poorer communities.     

Corporate Social Responsibility through Cross‐sector Partnerships: Implications for Civil Society,the State,and the Corporate Sector in India

Corporations are increasingly forced to widen their agendas to include social and environmental concerns, or corporate social responsibility (CSR). This development has been recorded in the current academic debate, and the views regarding its implications for business, the state, and civil society diverge. However, there is agreement within the CSR and corporate governance literatures that there is a lack of thorough empirical studies of these effects. Based on a case study of the multinational wind energy company Suzlon Energy's CSR projects in rural India, this article contends that CSR projects implemented through cross‐sector partnerships can help to build the capacities of civil society organizations (CSOs). Although the risk of corporate steering of the civil society agenda is reduced when CSR prioritizes community needs over business imperatives, CSOs tend to bear the highest costs in partnerships, through credibility losses and insecurity concerning project terms and funding, reinforcing the importance of critical cooperation and complementary core competencies in cross‐sector partnerships. The results have implications for the strategies of corporations, CSOs, and governments as well as for the planning of national and international development aid.     

The how and why of a firm’s approach to CSR and sustainability: a case study of a large European company

This paper aims to analyse “how” and “why” a company engages in CSR and sustainability. The “how” concerns the features of the firm’s CSR and sustainability approach, defined in terms of a firm’s strategy (implemented issues, initiatives and activities) and organization (organizational structures and roles and managerial systems adopted). The “why” refers to the key determinants, both internal and external, of CSR and sustainability. Finally, how the firm’s CSR and sustainability approach evolves over time and the relation between CSR determinants in various stages of the CSR evolutionary path are also investigated. The research method is based on the longitudinal analysis of a case study concerning a large multinational company operating in the telecommunications industry in Europe. The analysis of the case study shows that sub-cultural differences in the approach to CSR and sustainability may occur across hierarchical levels and functional units. Moreover, embedding CSR and sustainability principles doesn’t follow a linear and continuous process, made by sequential stages. Indeed, it can be characterized by an up and down evolutionary path, based on different stages with a changing emphasis given to CSR and sustainability issues. Finally, we find that the firm CSR and sustainability approach is not an autonomous choice, but it is a consequence of the contingent role played by both the external and the internal drivers and by their relative importance during the company’s CSR history.     

When Do Multinational Companies Consider Corporate Social Responsibility? A Multi‐country Study in Sub‐Saharan Africa

While African countries are becoming more and more relevant as host countries for suppliers of multinational companies little is known about corporate social responsibility (CSR) in this region. To fill this gap, the present article explores CSR considerations of foreign affiliates of multinational companies when choosing local African suppliers. The article suggests a model of three types of determinants, namely firm characteristics, exports, and intra‐trade. Analyses of a large‐scale and quite unique firm level data for more than 2,000 foreign owned firms in 19 sub‐Saharan African countries demonstrate that firms importing intermediates from their parent company abroad are more likely to implement CSR. Similarly, CSR plays a larger role for affiliates that export to developed countries. Different determinants affect environmental and social CSR activities.     

The Impact of Nonagility on Service Level and Project Duration*

“Why projects are late” is a fundamental issue in theory and in practice. One well‐established explanation is that a project's network structure can be a significant factor—the “fatter” or more parallel the project, the later the project completion. Herein we show that a lack of agility, which may frequently arise in projects when there are external resources, can also be a significant factor in project delays—both in more serial‐like projects as well as more parallel ones. Specifically, this article formally characterizes the concept of agility in projects, shows how a lack of agility can have a significant impact on a project, and gives some general properties on agility with respect to a project's structure.     

Distressed Selling by Farmers: Model,Analysis, and Use in Policy‐Making

Among the various governmental schemes that support agriculture, support prices have been adopted by many developing countries. A support price for an agricultural crop is a guaranteed price at which a governmental entity agrees to purchase that crop from farmers. Despite this surety, a surprising practice of “distressed” selling 1 1 A 1‐minute news clip on distressed selling is available at: https://www.youtube.com/watch?v=U2lr5rBTpaU
has been widely observed in practice: Farmers sell a significant portion of their crops to outside agents at prices much lower than the support price. We build a tractable stochastic dynamic programming model that captures the salient features of the ground realities—limited as well as uncertain procurement capacity, high holding costs for the farmers, and lack of affordable credit—that conspire to induce distressed selling and, consequently, a significant loss of welfare of the farmers. Using real data on procurement under a support‐price program, we establish the accuracy of our model's prediction on the volume of distressed sales. Finally, we show how our model and its solution can serve as a simple and useful tool for policy‐makers to assess the relative impact of the improvements in the main determinants of distressed sales.     

Korreferat zum Beitrag: Hanno Merkt,Die Rolle des Bilanzrechts in der aktuellen Corporate Governance-Diskussion

Objective of my discussion is to assess the findings of Hanno Merkt and to provide some suggestions regarding several of the discussed issues. The coactions of company law and capital market regulation as well as codices pertaining to accounting and corporate governance as mentioned by Hanno Merkt call for a differentiated approach. In particular, a distinction regarding capital market orientation of companies as well as regarding differing purposes of individual and consolidated financial statements has to be made. Also, I encourage the research community to discuss the company’s management and monitoring philosophy (“Unternehmensinteresse”) and its enforcement in more detail (again). In my opinion, financial reporting serves the purpose of accountability and therefore is—in this sense—only a part of corporate governance in the area of capital markets.     

When and How to Pursue Corporate Social Responsibility with Core Competencies

We first establish that the pursuit of corporate social responsibility (CSR) can enhance the society's welfare when both market and government imperfections occur, and demonstrate this is likely in most locales across the world. Second, we show that CSR initiatives are most likely successful and sustainable when a firm accurately identifies the benefits and costs of potential CSR initiatives and implements them consistent with its core competencies. We provide three reasons for a firm to focus CSR initiatives on core competencies: to reap economies of scale and scope in building company‐wide knowledge and skills; to promote worker productivity that is integral to the firm; and to exploit the fixed costs associated with managing workers. Each reason provides a distinct way to minimize the costs and increase the gains from pursuing CSR initiatives and provides implications for implementing CSR initiatives.     

Perception of Climate Risk among Rural Farmers in Vietnam: Consistency within Households and with the Empirical Record

Rural farmers in Vietnamese communes perceive climate risk and potential impacts on livelihood within a complex context that may influence individual and household decisions. In a primary survey of 1,145 residents of the Thach Ha district of Ha Tinh province, we gathered data regarding perception about stability in climate, potential risks to livelihood, demographic characteristics, orientation toward risk, and interest in expanding economic activity. Temporal analysis of meteorological and economic indicator data forms an empirical basis for comparison with human perception. We ask the basic question: Are rural farmers’ perceptions of climate consistent with the historical record and reproducible within households? We find that respondents do perceive climate anomalies, with some anchoring on recent extreme events as revealed by climate observational data, and further that spouses disproportionately share perceptions relative to randomly simulated pairings. To put climate‐related risk perception in a larger context, we examine patterns across a range of risks to livelihood faced by farmers (livestock disease, pests, markets, health), using dimension reduction techniques. We find that our respondents distinguish among potential causes of low economic productivity, with substantial emphasis on climate‐related impacts. They do not express uniform concern across risks, but rather average patterns reveal common modes and distinguish climate concern. Still, among those expressing concern about climate‐related risks to livelihood we do not find an association with expressed intention to pursue changes in economic activity as a risk management response.     

Organizational transformation: Handling the double-edged sword of urgency

A central idea in organizational research and practice is that change efforts demand a sense of urgency. It is also commonly accepted that renewal beyond incremental improvements demand individuals and teams to have what earlier research has called a “promotion focus”—to think innovatively, see opportunities, and think long term. Urgency, however, leads to a “prevention focus,” with which teams and their members are more inclined to seek incremental improvements and error reduction. Hence, urgency seems to both support change and prevent it. Earlier research has not established the conditions under which urgency may lead to creative and productive outcomes. This paper aims to do so. In a study of seven change initiatives at a large media company undergoing a serious crisis, we found that urgency cues could be productively handled by managers and project team members when they addressed three core relationships: (a) the success-failure relationship, (b) the safety-accountability relationship, and (c) the operative-strategic relationship. We make three related theoretical propositions regarding the role of urgency in innovation-driven change and transformation.     

Trust,Morality, and the Privatization of Water Services in Developing Countries

This article examines the business of water privatization and the ethics implied in the transformation of the water services sector in developing countries. Drawing on data derived from field visits and semi‐structured interviews held with members of government, nongovernmental organizations, and other stakeholders in one country undergoing transformation in this sector, Ghana, the article considers the ethical perspectives of the various involved stakeholders. The analysis draws on three perspectives—Gilligan's ethic of care, Rawls’ principles of justice, and virtue ethics—which together highlight the economic, class, and gender‐based dimensions of the privatization debate. Finding that endemic mistrust characterizes this debate, the article considers what is needed to re‐instill trust among stakeholders. Specific implications are provided for business leaders and government policymakers.     

Looks‐Based Hiring and Wrongful Discrimination

Popular clothing retailer Abercrombie and Fitch (A&F) is well‐known for hiring attractive store sales clerks. While the economic benefits of this hiring practice for the company are undeniable, many commentators contend that it constitutes wrongful discrimination against unattractive job seekers. In this article, I explore the ethics of A&F‐style lookism and challenge two common perspectives on this issue. I argue that on one hand, looks‐based hiring cannot be defended based on its economic benefits alone, as race‐based hiring also can be profitable in some circumstances. At the same time, I reject arguments that looks‐based hiring is not “job relevant” given its economic impact in many contexts. Through a comparison between race‐ and looks‐based hiring, I conclude that at least for businesses that are relevantly similar to A&F—firms for which lookism produces clear economic benefits—looks‐based hiring is permissible.     

Risk Management and the Wisdom of Aldo Leopold

Human demands on nature have increased due to our burgeoning population. The applications of scientific knowledge to the development of increasingly powerful technologies and consumptive lifestyles by more and more people have created a modern category of human‐caused disaster—stealth disasters. Stealth disasters—such as agriculturally‐induced soil erosion and release of unprecedented amounts of greenhouse gases into Earth's atmosphere—tend to have protracted, unobvious onsets; do not necessarily have dramatic manifestations; and often do not attract public attention until they reach a stage approaching catastrophic consequences. At this late stage it is difficult or impossible to undo damage. Scientists tend to be among the first to understand the physical causes and notice the developments of stealth disasters and their risks and yet scientific knowledge is not enough to prevent or mitigate them. As we search for ways to deal with stealth disasters, the concept of “land health” assembled by the prominent conservationist and author, Aldo Leopold (1887–1948), can, in normative terms, provide an ecologically grounded example of nature in good condition toward which society can aim. Evidence of the reverse—symptoms of land illness—can provide a checklist for risk analysis and management that helps guide people away from harm‐causing attitudes and activities and toward beneficial outcomes. Leopold's criteria of land health motivated by a land ethic that incorporates the whole of nature may be applied at geographic scales ranging from local to global as a framework for contemporary risk management.     

Enhancing the Quality of Reporting in Corporate Social Responsibility Guidance Documents: The Roles of ISO 26000, Global Reporting Initiative and CSR‐Sustainability Monitor

The intent of this article is to review the phenomenal growth of Corporate Social Responsibility reports published by large corporations around the world. The reports provide companies with an opportunity to inform large segments of society about the impacts of their business operations on the environmental, socio‐political, and governmental (regulatory) aspects of a society. The mostly voluntary nature of these reports, however, places the burden on the corporations creating them to (a) provide an adequate amount of information, (b) cover all the major issues that are relevant to the company and industry, and (c) provide measures of assurance as to the accuracy of information. In this article, we compare and examine three institutional approaches that have played an important role toward improving the quality and consistency of these reports. The institutions involved are ISO 26000, Global Reporting Initiative (GRI), and Corporate Social Responsibility (CSR)‐Sustainability Monitor. We intend to show their different approaches to guiding CSR reporting, and assess their relative strengths and limitations.     

Governance Choices for Corporate Social Responsibility: to Contribute,Collaborate or Internalize?

Within a competitive business environment where resources are limited, it is increasingly important for senior management to make every investment count. Measuring ‘return on investment’ occurs at every level of operations—so why not also in the arena of Corporate Social activity? Until now, much research has focused on finding the link between corporate social responsibility (CSR) and increased business performance. Researchers have not examined the cost implications associated with the different forms of governance utilized by companies to implement their CSR activities, e.g., outsourcing through charitable contributions, developing an in-house program, or creating a more collaborative model, which benefits both the company and the partner nonprofit organization. Careful examination and evaluation of these costs will help senior management choose the governance structure that will maximize the benefits they reap from CSR activities.Drawing upon insights from organizational economics, this article develops a framework to compare the alternative modes of CSR governance and identifies the key drivers that affect governance choice, including associated costs. Most importantly, it provides a decision-making tool that can guide senior management in this vital choice as a way to contribute to the competitive advantage of the firm.     

TEACHING SUPPLY CHAIN MANAGEMENT THROUGH GLOBAL PROJECTS WITH GLOBAL PROJECT TEAMS

In this article, we describe the Global Project Coordination Course, a course in which project teams composed of three students from each of two overseas universities execute company‐sponsored projects dealing with global supply chain management issues. The $75,000 to $100,00 contributed in total by the three to four sponsoring companies funds all course expenses. We assess the benefits and challenges of the use of cross‐cultural project teams with diverse educational backgrounds. We conclude that the course provides a unique and effective vehicle for furthering students' knowledge of Supply Chain Management and Information Systems, improving understanding of “soft” issues, and training students to work in diverse, global, cross‐cultural project teams.     

Mitigating the environmental and social footprint of brownfields: The case for a peripheral CSR approach

Industrial plant closures create a largely unexplored challenge for corporate social responsibility (CSR) strategy. Such plant closures lead to brownfield sites: economic assets and large pieces of land that often cannot be redeployed for alternative purposes, except by incurring significant costs. The direct effects of plant closures typically include a rise in unemployment and value chain disturbance (or dismantling), but brownfields are usually also associated with additional social effects and environmental pollution. Here, a proactive CSR strategy means reducing or mitigating the joint, negative social and environmental footprint of industrial plant closures beyond what is mandated by law (which has tended primarily to address direct effects). We assess the various strategies firms can pursue to mitigate negative, post-closure footprints and we distinguish between two alternative strategic options beyond the ‘legal obligations’ approach, namely the ‘core business related’ (core) CSR approach, and the ‘peripheral CSR’ approach. We explore the case of a plant closure by Bekaert S.A., a large, Belgian industrial firm, which adopted a peripheral CSR approach to manage and redevelop a brownfield site. In this context, we identify four enabling conditions for peripheral CSR to be implemented effectively.     

Maximizing Business Returns to Corporate Social Responsibility (CSR): The Role of CSR Communication

By engaging in corporate social responsibility (CSR) activities, companies can not only generate favorable stakeholder attitudes and better support behaviors (e.g. purchase, seeking employment, investing in the company), but also, over the long run, build corporate image, strengthen stakeholder–company relationships, and enhance stakeholders' advocacy behaviors. However, stakeholders' low awareness of and unfavorable attributions towards companies' CSR activities remain critical impediments in companies' attempts to maximize business benefits from their CSR activities, highlighting a need for companies to communicate CSR more effectively to stakeholders. In light of these challenges, a conceptual framework of CSR communication is presented and its different aspects are analyzed, from message content and communication channels to company- and stakeholder-specific factors that influence the effectiveness of CSR communication.     

Dedicated Transportation Subnetworks: Design,Analysis, and Insights

A dedicated subnetwork (DSN) refers to a subset of lanes, with associated loads, in a shipper's transportation network, for which resources—trucks, drivers, and other equipment—are exclusively assigned to accomplish shipping requirements. The resources assigned to a DSN are not shared with the rest of the shipper's network. Thus, a DSN is an autonomously operated subnetwork and, hence, can be subcontracted. We address a novel problem of extracting a DSN for outsourcing to one or more subcontractors, with the objective of maximizing the shipper's savings. In their pure form, the defining conditions of a DSN are often too restrictive to enable the extraction of a sizable subnetwork. We consider two notions—deadheading and lane‐sharing—that aid in improving the size of the DSN. We show that all the optimization problems involved are both strongly NP‐hard and APX‐hard, and demonstrate several polynomially solvable special cases arising from topological properties of the network and parametric relationships. Next, we develop a network‐flow‐based heuristic that provides near‐optimal solutions to practical instances in reasonable time. Finally, using a test bed based on data obtained from a national 3PL company, we demonstrate the substantial monetary impact of subcontracting a DSN and offer useful managerial insights.